Asian Shares Mixed On Oil Price Jitters

(RTTNews) - Asian stocks ended mixed on Monday as the ongoing war in the Middle East dragged into a third week, driving up energy prices sharply and clouding the outlook for growth, earnings and inflation.

Regional losses remained capped somewhat after U.S. President Donald Trump called on allies to send naval escorts to protect vessels in the Strait of Hormuz.

Gold traded below $5,000 an ounce and the dollar was firm ahead of a Federal Reserve policy this meeting, with no change in interest rates expected.

Brent crude prices rose more than 2 percent to hover above $105 per barrel after Iran accused the United States of targeting and bombing Kharg Island, the oil hub of the Middle East nation.

China's Shanghai Composite index slipped 0.26 percent to 4,084.79 as U.S. President Trump linked a trade summit with China to Beijing's assistance in securing shipping through the Strait of Hormuz.

A slew of Chinese data released earlier in the day pointed to a firm start to 2026 despite external headwinds.

China's industrial production and retail sales increased more than expected in the January to February period, while fixed-asset investment registered a small expansion, confounding expectations for a decline.

Hong Kong's Hang Seng index rallied 1.45 percent to 25,834.02 after reports suggested that top U.S. and Chinese officials held "remarkably stable" talks in Paris, focusing on agricultural trade, critical minerals access, and new trade management frameworks.

Japanese markets ended slightly lower as hopes dimmed for a quick resolution to the U.S.-Israel war on Iran.

The Nikkei average slipped 0.13 percent to 53,751.15, extending losses for a third straight session. The broader Topix index settled half a percent lower at 3,610.73.

Prime Minister Sanae Takaichi said today issuing a maritime security order based on the Self-Defense Forces law to escort ships in the Middle East would be "legally difficult."

Separately, Finance Minister Satsuki Katayama said authorities are prepared to respond to movements in the currency market with bold steps after the yen sank close to the psychologically important 160-per dollar line.

Seoul stocks ended sharply higher after a choppy session. The Kospi index jumped 1.14 percent to 5,549.85 led by gains in chipmakers. Samsung Electronics rallied 2.8 percent and SK Hynix surged 7 percent.

Australian markets ended lower a traders reacted to rising geopolitical tensions and braced for the Reserve Bank of Australia's rate decision.

The benchmark S&P/ASX200 index fell 0.39 percent to 8,583.40 while the broader All Ordinaries dropped 0.52 percent to 8,793.40.

While weak commodity prices weighed on the mining sector, rate-sensitive financials rose on hawkish RBA bets. Energy stocks also advanced as oil prices remained elevated amid the effective closure of the Strait of Hormuz.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index dipped 0.17 percent to 13,164.58, marking a third straight decline after a weaker services reading suggested domestic demand remains fragile in the country.

U.S. stocks ended lower on Friday as investors digested mixed economic data and watched the escalating Middle East conflict.

U.S. GDP growth for the fourth quarter was revised sharply lower to 0.7 percent and consumer sentiment ebbed in early March on worries about higher energy costs, fueling stagflation fears.

A separate report revealed that consumer spending increased slightly more than expected in January.

The tech-heavy Nasdaq Composite fell 0.9 percent, the S&P 500 shed 0.6 percent and the Dow dipped 0.3 percent.